When people think of crime, they often picture violence or theft.
But behind the scenes, another type of wrongdoing quietly chips away at public trust—and taxpayer dollars.
This week, the Justice Department took a strong stance against that kind of economic crime by sentencing a former Michigan executive involved in a major bid rigging scheme.
Six-Month Prison Term and $500K Fine for Former Asphalt President
Daniel L. Israel, who once served as the president of Asphalt Specialists LLC (ASI) based in Pontiac, Michigan, has officially been sentenced.
He’ll spend six months behind bars and pay a hefty $500,000 fine after pleading guilty to his role in a long-running conspiracy to manipulate contract bids for asphalt paving services.
Israel admitted in October 2023 to working with another company, Al’s Asphalt Paving Company Inc., and various employees to secretly coordinate bids.
The idea was simple—but illegal. The companies would agree in advance who would win certain contracts, making it appear that competitive bidding was taking place when it was all pre-arranged.
Antitrust Crackdown: More Than $8 Million in Fines So Far
Israel’s case is just one part of a much broader federal antitrust investigation into corruption in the paving industry.
So far, the probe has led to charges against seven individuals and three companies. Combined, the cases have resulted in over $8.2 million in criminal fines.
The Justice Department isn’t mincing words about the seriousness of this type of fraud.
Acting Deputy Assistant Attorney General Omeed A. Assefi put it plainly: “Economic crime — like bid rigging — is no less harmful than violent crime.”
He emphasized that the conspiracy deprived the public of true competition and allowed the perpetrators to profit unfairly.
Scheme Involved Fake Competition and Pre-Planned Losses
According to court documents, the companies involved would submit intentionally weak bids to make it seem like there was a fair competition happening.
In reality, the winners were already chosen behind closed doors.
This secret coordination went on for more than five years—from March 2013 through November 2018.
Israel and others used the process to lock in profits and control over public paving contracts, all while deceiving the communities they were hired to serve.
Other Executives and Companies Also Facing Consequences
Israel isn’t the only one being held accountable.
His former company, ASI, along with another ASI executive, pleaded guilty earlier this year for playing a role in the same conspiracy.
ASI has already been hit with a $6.5 million fine, handed down in August 2024.
On the other side of the partnership, Al’s Asphalt and two of its top executives also admitted guilt in 2024.
Both sides of the bid rigging operation are now facing the consequences, marking a major win for the government’s effort to protect competitive bidding.
Federal Agencies Join Forces to Expose the Scheme
The investigation was a joint effort, led by the Antitrust Division’s Chicago Office alongside the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the U.S. Postal Service Office of Inspector General.
Special Agent in Charge Anthony Licari of the DOT-OIG said the case highlights the importance of cracking down on those who manipulate public funds for personal gain.
“We remain committed to working closely with our law enforcement and prosecutorial partners,” he said.
Public Urged to Report Suspicious Activity
Officials are encouraging anyone who might have information about similar anticompetitive behavior in the industry to come forward.
Reports can be made through the Antitrust Division’s Complaint Center at 888-647-3258 or by visiting http://www.justice.gov/atr/report-violations.